200 S. Anaheim Blvd.
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Anaheim, CA 92805
Tel: (714) 765-5110
Fax: (714) 765-5288
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: AUGUST 25, 2026
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVAL OF NEW MASTER AGREEMENT 106‑499019 AND
RATIFICATION OF THE INCREASE TO MASTER
AGREEMENT 106‑497476 WITH CARRIER CORPORATION
FOR HVAC REPAIR AND MAINTENANCE SERVICES
ATTACHMENT (Y/N): YES ITEM # 14
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve Contract Master Agreement No. 106‑499019 with Carrier Global Corporation dba Carrier Corporation (Carrier) for as‑needed HVAC repair and maintenance services for an initial one‑year period, in annual not‑to‑exceed amounts of $150,000 for the Anaheim Convention Center (ACC) and $200,000 for the Public Works Department, and,
2. Authorize the Purchasing Agent, or their designee, to execute all necessary contractual documents in accordance with Sourcewell Cooperative Agreement No. 080824‑CAR with Carrier, and to exercise optional renewal years at the request of the using departments through November 1, 2028, or any extension periods agreed upon by Sourcewell and Carrier, including the application of CPI based price increases as applicable to renewal periods (subject to available budget appropriations); and
3. Ratify an increase of $55,000 to Master Agreement No. 106-497476 with Carrier Corporation, bringing the total not to exceed amount from $100,000 to $155,000, for critical HVAC repair expenses at the ACC for the service period of June 2024 to June 2025.
DISCUSSION:
Carrier Corporation’s HVAC services are essential to ensuring reliable operations at the Anaheim Convention Center and across multiple city facilities. The Convention Center hosts more than 100 major events each year and relies heavily on Carrier‑manufactured chillers. Carrier is vital to maintaining system performance and ensuring proper air quality, comfort, and safety for over a million attendees.
Approval of New Master Agreement No. 106‑499019 and Ratification of the Increase to Master Agreement No. 106‑497476 with Carrier Corporation for HVAC Repair and Maintenance Services
August 25, 2026
During the June 2024–June 2025 performance period under Master Agreement No. 106‑497476 with Carrier, ACC staff identified the need for an additional $50,000 to complete chiller repairs at the Anaheim Convention Center, increasing the total not-to-exceed amount from $100,000 to $150,000. Staff now requests ratification authorization for the $50,000 increase that enabled completion of the critical chiller repairs at the ACC.
Public Works also depends on Carrier for long‑term reliability, with Carrier‑specified systems installed in fire stations, libraries, community centers, utilities facilities, and critical infrastructure sites such as Linda Vista Ground Water Treatment Plant. As the City continues to specify Carrier equipment in new construction and rehabilitation projects for standardization, maintaining adequate contract authority with Carrier is necessary to support ongoing maintenance needs, safeguard City assets, and ensure uninterrupted operation of essential public facilities.
A cooperative contract will be utilized for this procurement, as authorized by Council Policy 4.0 (Purchasing Procedures). Leveraging cooperative contracts allows municipalities to maximize resources, enhance service delivery, and benefit from the collective purchasing power of multiple public agencies. The City will utilize Sourcewell Cooperative Agreement No. 080824‑CAR with Carrier, which was competitively solicited and awarded by Sourcewell, a Minnesota‑based public agency and service cooperative that serves as the lead agency for participating governmental entities. Use of this cooperative agreement reduces staff time, accelerates implementation, and enables the City to take advantage of pre‑established pricing while maintaining compliance with applicable procurement requirements.
Pricing for the agreement is fixed for the first year, including hourly rates for chiller technicians, the round‑trip fee, and the consumables fee per service call, with a markup on as‑needed materials and subcontractors not to exceed 35%, which may be adjusted during negotiation of any transaction.
The term of the agreement will be for a one‑year base period, with the City having the option to renew annually through November 1, 2028, and thereafter for any additional period in which the Sourcewell master agreement is extended by Sourcewell and Carrier Corporation. Pricing for renewal periods will be negotiated annually, with any price increases not to exceed the change in the Consumer Price Index (CPI) for the Los Angeles–Long Beach–Anaheim, CA areas for the most recent available month period. In the event of future government‑mandated wage changes requiring labor cost increases greater than the annual CPI adjustment, an increase in direct labor costs will be negotiated up to the amount necessary to meet the mandate.
IMPACT ON BUDGET:
Sufficient funds are available in the Anaheim Convention Center and Public Works Departments’ Fiscal Year 2026/27 budget. Future year renewals will be subject to Council’s approval of budget appropriations.
Approval of New Master Agreement No. 106‑499019 and Ratification of the Increase to Master Agreement No. 106‑497476 with Carrier Corporation for HVAC Repair and Maintenance Services
August 25, 2026
Respectfully submitted, Concurred by,
Ed Segura Thomas Morton, Executive Director
Purchasing Agent Convention Center, Sports, and
Entertainment
Concurred by,
Rudy Emami
Public Works Director
Attachment:
1. Contract Master Agreement No. 106-499019
2. Exhibit – Master Agreement Purchase Order No. 106-497476